Contact: Brady Anderson
Office: 801.746.4739
Email:
[email protected]
FOR IMMEDIATE RELEASE
Newmark Grubb ACRES Q1 2015 Market Report
Industrial – Bulk Distribution Still Highlight of Strong Market
The bulk distribution segment of the market had a banner year in 2014, outperforming all other
product types. This trend continued in first quarter 2015, with bulk distribution accounting for
more than half the total square feet leased and nearly 64% of total dollar volume. The yearover-year bulk distribution square feet leased almost doubled, and total leased square feet
increased 34%. The increase in bulk distribution activity is attributable to pent-up demand for
supply that was unavailable in 2013. While net absorption was positive at 199,294 square feet,
the supply-constrained market limited absorption, resulting in a 62% decrease from firstquarter 2014. There also remains a strong demand for quality space less than 15,000 square
feet, especially in the south end of the valley.
Overall, the Salt Lake County industrial market continued to perform well in first quarter 2015,
limited only by a lack of quality supply. Despite the supply challenges, optimism remains strong.
In anticipation of new tenants, developers will deliver well over 2.7 million square feet of
product (mostly bulk distribution). As smaller increment space continues to be absorbed,
average rental rates will increase in 2015.
Office –Low Vacancy and Higher Rates Show High Office Demand
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About Newmark Grubb ACRES
Newmark Grubb ACRES (formerly NAI WEST) was founded in Salt Lake City, Utah in 1998 as a full-service
commercial real estate brokerage. It has since grown to include property management, property maintenance and
global corporate services. For the last five years, Newmark Grubb ACRES has been recognized as the No. 1
commercial real estate brokerage by Utah Business Magazine and the No. 1 property management firm by the
Enterprise Newspaper.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with
London-based partner Knight Frank and independently-owned offices, NGKF's 12,000 professionals operate from
more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real
estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate
tenants, landlords, investors and developers a wide range of services including leasing; capital markets services,
including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage
services; as well as corporate advisory services, consulting, project and development management, and property and
corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the
wholesale financial and real estate markets. For further information, visitwww.bgcpartners.com.
Contact: Brady Anderson
Office: 801.746.4739
Email:
[email protected]
FOR IMMEDIATE RELEASE
The Salt Lake City office market ended the first quarter of 2015 with vacancy below 10% for the
first time in more than a decade. With vacancy at 9.6%, landlords were able to increase average
asking rates by $1.58 per square foot, up 7.6% from a year ago.
In response to demand for quality space, more than 1.4 million square feet of Class A space is
under construction, with projected completion in 2015. Despite this new product coming on
line, we anticipate lease rates will continue to increase, especially on quality Class A space. The
continued strong demand for office space will lead to positive absorption in the newly delivered
space and leave the office supply still short of the demand.
Retail – High Lease Rates and Investment Volume Show Hot Market
Utah’s retail market continues its positive momentum with the lowest vacancy rate in over
seven years (7.30%) and a 9% increase in year over year lease rates ($16.07).
The low vacancy, higher lease rates, and continued low borrowing interest rates have all
sparked an increase in retail investment sales, up 93% year over year. This high demand has
driven cap rates to a low of 7.21% over the last 12 months.
Investment – Historically Low Cap Rates Continue to Fall
Last year and the first quarter of this year have validated the increasing and continued
confidence investors have in the Utah market. Significant cap rate compression was realized
across all commercial market segments as buyers competed for quality investment properties.
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About Newmark Grubb ACRES
Newmark Grubb ACRES (formerly NAI WEST) was founded in Salt Lake City, Utah in 1998 as a full-service
commercial real estate brokerage. It has since grown to include property management, property maintenance and
global corporate services. For the last five years, Newmark Grubb ACRES has been recognized as the No. 1
commercial real estate brokerage by Utah Business Magazine and the No. 1 property management firm by the
Enterprise Newspaper.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with
London-based partner Knight Frank and independently-owned offices, NGKF's 12,000 professionals operate from
more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real
estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate
tenants, landlords, investors and developers a wide range of services including leasing; capital markets services,
including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage
services; as well as corporate advisory services, consulting, project and development management, and property and
corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the
wholesale financial and real estate markets. For further information, visitwww.bgcpartners.com.
Contact: Brady Anderson
Office: 801.746.4739
Email:
[email protected]
FOR IMMEDIATE RELEASE
Cap rates hit a historic low in first quarter 2015. Industrial saw the most significant year-overyear change in cap rates, experiencing a drop of almost one full point and pushing price limits.
Multifamily continued to lead with the lowest average cap rate of 5.72%, which was more than
1.25 points lower than any other category.
With interest rates still at a historic low and lending institutions flush with cash, investors will
continue their aggressive purchasing in 2015. Retail and multifamily will both remain desirable
assets. Office and industrial product will see increased investor attention this year. Utah’s
strong economic fundamentals will continue to attract investors and maintain current cap rate
trends across all market segments.
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About Newmark Grubb ACRES
Newmark Grubb ACRES (formerly NAI WEST) was founded in Salt Lake City, Utah in 1998 as a full-service
commercial real estate brokerage. It has since grown to include property management, property maintenance and
global corporate services. For the last five years, Newmark Grubb ACRES has been recognized as the No. 1
commercial real estate brokerage by Utah Business Magazine and the No. 1 property management firm by the
Enterprise Newspaper.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with
London-based partner Knight Frank and independently-owned offices, NGKF's 12,000 professionals operate from
more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real
estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate
tenants, landlords, investors and developers a wide range of services including leasing; capital markets services,
including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage
services; as well as corporate advisory services, consulting, project and development management, and property and
corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the
wholesale financial and real estate markets. For further information, visitwww.bgcpartners.com.